by Have you ever been tempted by the allure of credit card rewards? I certainly have. As someone who once drowned in credit card debt, I want to share my journey from compulsive spender to savvy rewards earner. But before we dive in, let’s address the elephant in the room: Are you truly ready to play this game?
My Credit Card Confessions
Picture this: A 20-year-old college student (that’s me) with newfound “financial freedom.” Credit card offers flooded my mailbox, and I fell for them hook, line, and sinker. Need a new outfit for the weekend party? Charge it! Surprise home repairs? Charge it! Before I knew it, I was trapped in a 17-year cycle of debt.
It wasn’t until I hit rock bottom that I realized a crucial truth: material possessions weren’t making me happy. This epiphany kickstarted my journey to financial freedom, culminating in debt-free status nearly three years ago.
The Turning Point: Meeting My Financial Better Half
Enter Tatiana, my wife and financial polar opposite. While I was busy racking up debt, she had been responsibly using credit cards for rewards since “the beginning of time.” Her secret? Never carrying a balance.
When we got married, Tatiana suggested we use credit cards for everything to maximize rewards. I balked. The mere thought of credit cards left a bad taste in my mouth. It felt like inviting an alcoholic for daily drinks at the corner pub.
Our Compromise: Baby Steps into Rewards
We struck a deal: I’d become an authorized user on her cards, but she’d handle all statements and ensure we paid the full balance monthly. This arrangement forced me to confront my spending habits head-on.
To my surprise, I didn’t spiral into old patterns. I realized I was cured of my “debt disease.” Our purchases now added genuine value to our lives, often prioritizing experiences over things.
The Sweet Reward: Getting Paid to Play
After a year of this system, I noticed something shocking on our Mint account: we’d earned $788 in cashback rewards! For the first time, I was on the winning side of the credit card game.
While I’ll never recoup the thousands I paid in interest over the years, I’ve learned invaluable lessons. Now, we’re dipping our toes into travel hacking, with Tatiana applying for three travel rewards cards. (Stay tuned for updates on that adventure!)
A Word of Caution: Proceed with Care
If you’re considering playing the credit card rewards game, ask yourself these crucial questions:
- Can I pay the full balance if I lose my income?
- Do I understand what led me into debt before?
- Most importantly: Am I truly cured of compulsive spending?
Remember, as long as shopping is your primary source of happiness, the rewards won’t be worth the risk.
The Plastic vs. Cash Debate
Some argue that using plastic leads to higher spending. While that might be true for many, our frugal mindset helps us stay on track. We’ve found that the time saved on manual expense tracking and the rewards earned outweigh any potential overspending.
However, we do make exceptions. We pay local businesses in cash, supporting our community while keeping a personal touch in our finances.
Your Turn: Are You Ready to Play?
Playing the credit card rewards game can be exhilarating and profitable when done responsibly. But it’s not for everyone. Take a hard look at your spending habits and financial goals before diving in.
